Understanding SARS’s New Diesel Refund System: Essential Q&A for Users and Sellers

SARS has officially launched its new Diesel Refund System. This marks a major shift away from the old VAT-linked framework.

The new digital registration and relationship management portal is now live on e-Filing. Qualifying businesses must now re-register on this standalone platform.

Clients have been given an interim period to complete this registration and licensing process. This window allows businesses to onboard their profiles and set up supplier linkages.

Taking action now ensures that Users and Sellers are fully prepared for the next phases of implementation and ready for the claims go-live in 2027.

To help you to navigate these changes smoothly, we have put together a practical Q&A guide. It covers key registration rules, seller compliance, relationship links, and important operational milestones leading up to 2027.

Diesel Refund Users

QUESTION 1: Is the migration to the new Diesel Refund System automatic for existing users?

• Answer: No. SARS has confirmed there is no automatic data migration from the old VAT-linked model. All existing diesel refund users must actively re-register on the new standalone digital platform via SARS e-Filing.

QUESTION 2: When did registration open, and what platform is used?

• Answer: Registration officially opened on 18 September 2026. It is processed through a dedicated Diesel Refund Registration System interface on SARS e-Filing, separating it entirely from traditional VAT registrations.

QUESTION 3: Who is eligible to register as a Diesel Refund User under the modernised framework?

• Answer: Any entity that purchases and uses diesel to conduct qualifying activities (such as primary farming, forestry, commercial mining, or offshore / onshore coastal shipping, as well as qualifying “wet contractors”) can register.

QUESTION 4: Can an entity register as both a Diesel Refund User and a Diesel Seller?

• Answer: No. SARS regulations require a clear separation of roles; an entity cannot hold both User and Seller statuses under the same profile registration.

QUESTION 5: Must every location where primary activities take place be registered?

• Answer: Yes, every location where primary activities (i.e. where farming takes place) must be fully registered against the User registration / license. In other words, you can have one license with multiple locations.

Diesel Refund Sellers

QUESTION 1: Must diesel sellers and fuel suppliers also register with SARS?

• Answer: Yes. Fuel suppliers and diesel sellers are legally required to register on the new system.

QUESTION 2: Why is Seller registration critical for refund Users?

• Answer: If a diesel User purchases fuel from an unregistered Seller, the associated diesel refund will not be processed or allowed. Users must ensure their suppliers are fully registered so that electronic supply chain validation can take place.

QUESTION 3: Must every location where Diesel is dispensed from be registered?

• Answer: Yes, every location where Diesel is dispensed from (i.e. Depots or Tank Farms) must be fully registered against the Seller registration / license.

Relationship Linkage and Disclosures

QUESTION 1: What is the purpose of the Diesel Refund Relationship Management function?

• Answer: Implemented on e-Filing alongside the registration portal, this function allows clients to formally declare, manage, and maintain operational relationships linked to their diesel profiles (i.e. User-to-Seller connections).

QUESTION 2: How do buyers link themselves to their respective fuel suppliers?

• Answer: Once both the User and the diesel Seller are successfully registered on e-Filing, the user must establish and validate the relationship with that specific registered seller electronically.

Registration of Assets (Tractors, Tanks, etc.) and 2027 Go-Live

QUESTION 1: How does the current 2026 registration phase relate to the 2027 asset registration and claims go-live?

• Answer: The 2026 rollout focuses strictly on foundational profiling, digital User / Seller onboarding, and relationship mapping. The upcoming phases, including granular asset-level tracking (such as tractors, storage tanks, and primary equipment) and the standalone claims platform are scheduled to roll out toward the 2027 go-live.

QUESTION 2: Do clients need to register individual assets (like machinery or bulk tanks) right now?

• Answer: No, not yet. Asset-specific configuration and registration requirements are aligned with the subsequent implementation phases leading into 2027. However, clients should start compiling comprehensive asset registers and usage logbooks ‘now’ to prepare.

QUESTION 3: How are diesel refund claims handled in the interim period before the 2027 full claims go-live?

• Answer: Despite the shift of registrations to the standalone e-Filing platform, the actual submission of diesel refund claims continues to be administered through the standard VAT system via the VAT201 return on e-Filing until the full claims module goes live.

Final Considerations

QUESTION 1: What preliminary steps should Users and Sellers take immediately to prevent compliance bottlenecks?

• Answer: Clients should:
  1. Contact The Customs Hub for a quotation for a smooth transition to the new e-Filing platform. We understand all the documentation requirements and know how to configure the e-Filing setup.
  2. Verify that all your diesel Suppliers are actively registering or already registered on the new system. Contact The Customs Hub should you require assistance with Supplier linking. 
  3. You can also discover more information about this at our Diesel Licensing page.

Contact Us

Ensure that your e-Filing profile is updated early to avoid disruptions to your cash flow.

We can help you with the following Diesel Refund Licensing Activities:

1. Onboarding to e-Filing for Existing clients
2. Application on e-Filing for New clients
3. Supporting Documents and Requirements
4. Registration of Facilities (i.e. Tanks) and Machinery (i.e. Tractors, Trucks, Vessels, etc.)
5. Overcome Technical e-Filing challenges.

Contact us directly at this link, or submit the form below.